Be free of ALL debt except maybe the major house mortgage. You should have "in the bank" a good 6 months of expenses saved. Then you can play around. 6 months really isn't enough but it does give you a moments breath. My husband and I retired in 1996 - he was 48 I was 44. We have a monthly income (not including interest and dividends) of $2,400. Yes, we owe on nothing, own everything. Yes, we can live off of that small amount, we live within our means. Good luck.